Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
Cryptocurrencies are no longer a new phenomenon, and today more and more people want to invest in this asset. Recently, a lot of attention has been focused on LUNA 2.0. This is a controversial crypto asset as it was released on May 28th and immediately fell by 74%. After that, the asset fell another 60%, but then leveled off. And so it was several times. Now, there are disputes around this crypto asset, including whether it is worth investing in it.
Terra (LUNA) is a public blockchain protocol that grew out of Terra Classic. Terra Classic is home to the TerraClassicUSD (UST) algorithmic stablecoin. The LUNC token has now been renamed to UST, guaranteed by the LUNC token that broke in a bank run in May 2022. This depreciated LUNA almost to zero and led to the launch of a new chain, resulting in Terra Classic and Terra.
You might be interested in LUNA 2.0 price forecast: can the new cryptocurrency recover?
Terra tries to recover with LUNA 2.0
The development of Terra Classic was started in January 2018, and the blockchain was launched in April 2019. It tried to combine the price stability and widespread adoption of fiat currencies with the censorship resistance of bitcoin (BTC) and offer fast and affordable settlements through its UST stablecoin. . Terra Classic offered stablecoins pegged to the US dollar, South Korean won, Mongolian tugrik and a basket of currencies with special drawing rights from the International Monetary Fund.
The new Terra blockchain continues the Terra Classic legacy without the UST stablecoin. It will continue to be built with the help of the LUNA community, dubbed "LUNAtics", and will develop the world-class UX and UI that propelled Terra Classic into second place in Total Value Locked (TVL) at its peak. Many DApps have agreed to migrate to Terra in order to continue their functionality.
The project was founded by former Apple (AAPL) and Microsoft (MSFT) software engineers. Ironically, the project was aimed at introducing blockchain technology and cryptocurrencies, with a focus on price stability and user experience.
Terra focused on creating algorithmic stablecoins such as TerraUSD (UST) that maintained their peg to the US dollar through a LUNA token exchange mechanism that allowed users to exchange 1 UST for $1 into LUNA tokens. May 9, collapsed May 12 and triggered hyperinflation as UST sales led to the minting of billions of LUNA tokens.
How do brokers rate LUNA 2.0?
Attitude towards LUNA 2.0 is ambiguous and brokers are wary of this asset. But despite all the uncertainty of LUNA 2.0, brokers provide the opportunity to buy and sell a crypto asset. Below you can find the opinion of top brokers and their attitude towards LUNA 2.0
RoboForex: Terra's UST stablecoin served as ideal exit liquidity in what can be described as an extended pump and dump scheme. The combination of LUNA's supply controls, dollar psychology, and the guarantee of high returns guaranteed by its own pre-mined tokens created a steady liquidity outflow. But since there is no built-in inflation mechanism in the Terra protocol, token holders have 2 options how they can make a profit: selling tokens to new buyers or holding tokens until the asset grows in value.
DotBig: Terra has already done damage to the cryptocurrency market. But now there is a tendency that the creators of this project want to try again. But public opinion is that the cryptocurrency market should focus on projects that create value in order to become something more than a speculative asset class. And LUNA 2.0 should not be given a second chance, as there are chances that the asset will fail again.
FXTM: It's alarming that Terra was offering 19.5% APR on the Anchor protocol, paid out of its reserves. But even more troubling is the attempt to restart LUNA as a standalone token without a stablecoin and amend the proposal after voting begins.
Now terra 2.0 price may increase by the end of the year. And some brokers recommend buying the asset as long as the price allows.
LUNA 2.0 Price Prediction for 2023
It is predicted that the price of Terra will reach its maximum level before the end of 2022. Already in 2023, luna 2.0 price may reach a maximum level of $8.877 with an average transaction price of $6.601. It is also possible to predict the price for 2025, the asset is expected to exceed the average price level of $10.701.
The minimum expected price of Terra at the end of this year should be $9.881. In addition, the maximum price of LUNA can be as high as $10.906. Terra price is predicted to reach the lowest possible level in 2030 17.466 USD at 13.161.
Is LUNA 2.0 a good investment?
Before investing in LUNA 2.0, you should understand that the cryptocurrency market remains extremely volatile, which makes it difficult to accurately predict the price of a coin after a few hours and makes long-term estimates even more difficult. Thus, analysts and forecasters using algorithms may be wrong in their predictions. So, before making any investment, do your research, keeping in mind that investing in cryptocurrencies is very risky and speculative. Especially when it comes to such an unstable asset as LUNA 2.0.
It is worth noting that the maximum initial supply of LUNA coins in the new Terra network is 1 billion, at the moment, about half of the assets are now in circulation. Follow to luna v2 price and connect to DotBig investments.
Should I buy LUNA 2.0?
Cryptocurrencies are high risk assets, especially currencies like LUNA which have a history of volatility. Only you can decide if LUNA 2.0 is right for your portfolio, depending on your risk tolerance, portfolio size and objectives. Keep in mind that past performance is not a guarantee of future earnings.
Prediction sites vary in their opinion on the price of the LUNA 2.0 token going forward, with some predicting the price will fall while others predict different levels of returns. This difference in forecasts reflects the importance of doing your own research to get an informed idea of possible future price changes. Please note that predictions based on algorithms and analytics may not be correct. DotBig LTD recommends to follow the development of the project and make a decision based on this.
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.